This article is aimed at beginners who want to learn more about the topic of NFT. In a brief overview, we explain the technology behind digital art.
What is an NFT?
NFT stands for Non-Fungible Token. Non-Fungible, in turn, means non-exchangeable and can therefore be most closely compared to a unique item (e.g., a painting or a song). Similar to unique items, NFTs are unique and non-exchangeable assets. In the case of NFTs, they are digital assets, as special technology is required to generate and trade an NFT.
What does an NFT look like?
There are no limits to creativity when it comes to designing NFTs. In principle, any physical asset can also be generated as a digital NFT. Known NFT categories are:
What makes an NFT digitally unique?
An NFT, unlike conventional physical assets, consists of an additional component. If this additional component did not exist, a simple screenshot would be sufficient for duplication. Consequently, the mere design is not sufficient to define an ownership relationship in the digital world. With an NFT, the owner receives a tamper-proof certificate of ownership.
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What does an NFT cost?
The value of an NFT depends on the respective creator as well as the demand of the market. Since the supply is limited by the uniqueness, NFTs are an ideal value and a speculative asset. Similar to paintings on the art market, the price depends on many individual factors.
Where to buy NFTs?
You can buy NFTs on so-called NFT trading places. Known NFT trading places are:
Why are NFTs so hype right now?
Like cryptocurrencies, NFTs are created based on a blockchain application. The crypto market in particular has received enormous attention and growth in recent years. But also the younger NFT technology is generating more and more attention. Especially well-known artists and also companies are using the new technology. This is mainly due to the increasing interest in decentralized and country-independent systems as well as the gold rush mood and a speculative interest.
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